Africa-focused mining investment company Marula Mining has entered into a binding heads of agreement with Tanzanian mining company Takela Mining Tanzania and has secured a 49% commercial interest in the Kinusi copper mining project, which comprises ten granted copper mining licences.
The signing of the agreement with Takela follows a detailed legal and technical due diligence process and site visits to inspect the licence areas, the existing small-scale mining operations and initial sampling of some of the copper ores mined and visible mineralisation, Marula says.
The licences are valid for a period of seven years and are located in Kinusi, in the Mpwapwa district, in the Dodoma region of central Tanzania.
Marula affirms that that investment is firmly in line with its battery metals focus and identification of high-grade, near-term production and cash flow generating projects.
Marula will advance funds to Takela to allow it to complete additional exploration and expansion and development on the licences and to the current small-scale mining activities.
Marula has reimbursed $50 000 of costs incurred to date by Takela and will also issue 4.5-million ordinary shares in the company to Takela.
On site investigations by the company’s management during the due diligence period is noted to have identified a potential high grade and shallow copper orebody that appears to extend for over one kilometre and remains open in all directions.
Samples of the copper ore mined, and azurite and malachite copper mineralisation exposed in shallow pits and shafts on the licences, and taken by Marula during the due diligence period by management, reported copper grades of 7.28% copper, 19.12% copper and 31.32% copper.
Marula’s local geologists will be joining Takela’s management on site later this month to advance the initial work programmes and accelerated exploration activities.
Meetings are currently taking place in Nairobi between Takela’s senior management and the company’s chairperson and CEO to agree a development and expansion timetable.
Southern Metal Processing, Marula’s mineral processing and mining consultants, is already developing preliminary designs for a simple and conventional ore processing plant to fast-track the production of a high-grade copper concentrate.
Discussions are also being advanced with offtake parties for the sale and export of a high-grade copper product.